Almonty Turns Operating Cash Flow Positive as Molybdenum Drilling Accelerates at Sangdong
20.06.2026 - 04:22:12 | boerse-global.de
Almonty Industries has crossed a critical threshold. The tungsten miner, whose share price has surged 458% over the past year as Western governments scramble to secure non-Chinese supplies, is no longer just a story of geopolitical tailwinds. First-quarter results released in May show the company generating positive operating cash flow for the first time in its recent history, while a freshly completed $800 million convertible bond financing gives it the firepower to explore a second critical mineral — molybdenum.
Revenue jumped 221% year-on-year to $25.4 million in the three months ended March 31, driven by higher spot prices for tungsten ammonium paratungstate (APT) and strong output from the Panasqueira mine in Portugal. Almonty’s flagship Sangdong operation in South Korea only commenced commercial production in March, meaning its full contribution has yet to flow through. Operating cash flow flipped to positive $9.7 million from negative $4.4 million in the prior-year period. Net loss narrowed sharply to $5.3 million from $34.6 million, though the comparison is distorted by a non-cash revaluation of option liabilities that had added $25.8 million to the red figure a year earlier.
The balance sheet looks robust. Cash on hand stood at $259.9 million as of March 31, with net working capital of $169.5 million. That war chest has since been dramatically expanded. On June 2, Almonty closed an oversubscribed private placement of convertible debentures, raising $800 million at a 2.25% coupon with maturity in 2031. Including the exercise of the greenshoe option, net proceeds reached approximately $772.7 million. Management has earmarked roughly $543 million for working capital and general corporate purposes, including potential acquisitions, with the remainder dedicated to developing the Sangdong tungsten mine into what the company calls the largest tungsten source outside China.
Should investors sell immediately? Or is it worth buying Almonty?
One of the most intriguing uses of the new capital is a drilling campaign at the Sangdong Molybdenum Project, located directly adjacent to the tungsten mine. Almonty has planned 26 drill holes totaling about 12,000 meters, of which 37% are now complete. Initial assay results have confirmed grades consistent with historical drilling. Molybdenum is in high demand for aerospace, defense, nuclear energy, petrochemicals, and increasingly for semiconductor and solar applications. South Korea currently imports the vast majority of its molybdenum needs, and the government has designated the metal as critical, pressing private companies to develop domestic sources. Almonty intends to move directly into production once the resource is confirmed, adding a second revenue stream to complement its tungsten business.
The stock closed the week at CAD 26.54, up more than 120% since the start of the year but roughly 20% below the April high of CAD 33.35. Technical indicators suggest a pause rather than a reversal: the share price sits about 2.4% below its 50-day moving average of CAD 27.20, and the relative strength index of 53 is neutral. Annualized 30-day volatility remains elevated at nearly 99%, a reminder that the stock is still driven more by news flow and macro headlines than by fundamentals alone.
The geopolitical backdrop that has propelled Almonty shows no sign of easing. China imposed export restrictions on critical minerals including tungsten in early 2025, and the United States has set a January 1, 2027 deadline for defense contractors to stop sourcing tungsten from China, Russia, Iran, and North Korea. With that date just six months away, Almonty’s decision to move its corporate headquarters from Toronto to Dillon, Montana, earlier this year positions it as a domestic supplier, not a foreign mining group with a US listing.
The next major catalyst for the stock will be the completion of the molybdenum drilling program and the publication of a resource estimate. Until that arrives, the market is focusing on whether Sangdong’s production ramp-up and the Phase 2 timeline can justify a market capitalization of approximately €4.6 billion. The cash is there. The political imperative is real. Now execution is everything.
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